The Governor of Akwa Ibom State, Udom Emmanuel, on Thursday, called for the upward review of the revenue allocation to states by the Federal Government, to boost economic growth and enhance industrialisation in the country.
The governor made the call when members of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) paid him a visit at the Government House in Uyo.
Emmanuel appealed to the Federal Government to review the revenue allocation of the state to address the issue of population increase, marine security along the coastal lines, and erosion menace to reduce the burden on the state government.
Also, he urged the team to reflect on the major challenges of states in their input and work towards its implementation to further assist states tackle pending financial issues.
His words, “Honestly, the current sharing formula is not helping matters at all especially for us in the oil-producing areas. What you sign into law from the centre is also a major problem. How can you say that a community will take only 3% of the proceeds of the NNPC? This is generating a lot of heat here but we are trying to manage that.
“So, I hope this won’t be a similar exercise and that what we contribute will be taken into consideration. What we should do is to build and unite the country, coordinate economic activities for our growth and the interest of everybody so that we can live in peace. I welcome you to the state; be rest assured you will have all our cooperation and the exercise will go smoothly. Please, let it be an exercise that will yield success and not another fruitless labour.”
Furthermore, the governor decried that the state does not receive revenue from the large gas reserve, and VAT from international oil companies (IOCs) operating in the state.
“Gas is a major issue; I can’t be a state that sits on the largest quantum of gas in this country and I am not getting anything. 36.1% of the oil and gas reserve of Nigeria is in Akwa Ibom State and I am not getting anything from gas. So, how is it computed? There is something wrong somewhere; it is wrongly computed.
“These are raw data that can be verified anywhere. Now there is another controversy of VAT. All VAT from these IOCs, where are they paying them to? They are not paying them to us. So, there are many things you should look at and develop for the Federal Government. So, VAT from IOCs, from oil and gas should actually go to the states these things are produced,” the governor added.
In his remarks, the team leader from RMAFC and Federal Commissioner representing Akwa Ibom State, Sunday Ayang, said the visit was to sensitise Akwa Ibom people on the review of sharing formula between the federal, states, and local government where stakeholders will send in their inputs to capture grey areas.
According to Ayang, the constitution provides for the exercise to be carried out in five years to further improve revenue among the three tiers of government, noting that the team was working towards presenting memoranda before President Muhammadu Buhari for assessment and necessary actions.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
FEATURE…The plight of Kwara communities without potable water, govt presence
With a piteous voice and teary eyes, Isiaku Ajarat reflected on some of the challenges she had faced while trekking...
FEATURES: Rise in Monkeypox infection troubling Nigeria’s rural population
In this features, KELECHUKWU IRUOMA goes into the rural communities of Bayelsa State, south-south Nigeria to uncover the plight of...
SPECIAL REPORT: Kwara communities groan as erosion washes away roads, property
For a number of years communities in Ilorin South LGA of Kwara State have had to live with the menace...
SPECIAL REPORT: Lack of legal provisions, cultural sentiments fueling marital r*pe in Nigeria
By Arinze Chijioke In the early days of Sandra Izuckukwu’s marriage in 2019, her husband, Sunday Izuchukwu, did everything she...
INVESTIGATION… LIVES ON THE LINE (IV): Surviving in a dangerous media environment
This investigation is on the unresolved killing of three Nigerian journalists while on assignments between 2019 and 2020. For six...